Online Test Banks
Score higher
See Online Test Banks
eLearning
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

Key Steps in Keeping the Books

Part of the Bookkeeping Workbook For Dummies Cheat Sheet (UK Edition)

Any workflow or work process has its key stages or steps – a part of the process where you must remember to perform a certain action. In bookkeeping, the key steps are as follows:

  • Transactions: The purchases or sales of items start the process of bookkeeping.

  • Journal entries: Enter transactions into the books through journals.

  • Posting: Post journal entries to the Nominal Ledger.

  • Trial balance: Test accounts in the Nominal Ledger to see if they’re in balance.

  • Worksheet: Enter on a worksheet any account adjustments needed after the trial balance.

  • Adjusting journal entries: Post adjustments from the worksheet to affected accounts in the Nominal Ledger.

  • Financial statements: Prepare the balance sheet and income statement using the corrected account balances.

  • Closing: Close the books for the revenue and expense accounts, and start the entire cycle again with zero balances in both accounts.

blog comments powered by Disqus

SERIES
Bookkeeping Workbook For Dummies Cheat Sheet (UK Edition)

Advertisement

Inside Dummies.com

Dummies.com Sweepstakes

Win $500. Easy.